In case your Windows Server 2008 machine doesn't include a windows authentication scheme (see image below), do the following

Open up Server Manager (one way to do this is by right clicking the computer node from within the start menu and choosing Manage). Expend the Roles node. Right click the Web Server (IIS) and choose Add Role Services. You'll get the following wizard, just scroll down a bit and check Windows Authentication under the security node.

If you've done everything right , you should also get the following option in IIS authentication pane

It didn't work at first. I restarted my App Pool, then IIS, even clicked "Refresh", still nothing. Finally I just closed my IIS Manager window, reopened it, and it was there! Thanks a bunch for this article - it came in very handy.

I am using Windows 7 Home OS.
Role node is not getting displayed in the Computer Management. Only System tools, Storage, Services and Applications tabs are available.
Please help me enable windows authetication in my computer.